GUIDE Water Supply Asset Management Plan

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Water Supply AssetManagement Plan

June 2011

Policy Number: POL11/88 Adopted: 28 June 2011

Minute Number: MIN11.524File: 29183E

Produced By: Shoalhaven Water GroupReview Date: 01/09/2013


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Water Supply Asset Management PlanShoalhaven Water

A Group of Shoalhaven City Council

ContentsExecutive Summary ...................................................................................................................4

1. Introduction ......................................................................................................................5

1.1 Background...................................................................................................................5

1.2 Goals and Objectives of Asset Management ................................................................6

1.3 Core and Advanced Asset Management.......................................................................6

2. Asset Description ...........................................................................................................7

2.1 Overall System..............................................................................................................7

2.2 Dams...........................................................................................................................10

2.3 Water treatment plants.............................................................................................10

2.4 Reservoirs ...................................................................................................................11

2.5 Pump Stations.............................................................................................................12

2.6 Water mains ...............................................................................................................13

2.7 Water meters..............................................................................................................14

3. Levels of Service and KPIs ...............................................................................................16

4. Asset Condition ...............................................................................................................19

4.1 Regulatory Reporting of Asset Condition ...................................................................19

4.2 Asset Condition Methodology ....................................................................................19

4.2.1 Dams ..................................................................................................................20

4.2.3 Pump Stations ....................................................................................................21

4.2.4 Watermains........................................................................................................21

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4.2.5 Water Meters.....................................................................................................24

5. Future Demands and Enhancement Needs ....................................................................25

6. Operations and Maintenance Plans................................................................................27

7. Disposal Plan...................................................................................................................28

8. Financial Summary..........................................................................................................28

8.1 Asset Valuation and Depreciation ..............................................................................28

8.2 Financial Statements and Projections ........................................................................30

9. Risk Assessment and Management ................................................................................32

10. Service Delivery Model ................................................................................................34

11. Plan Improvement and Monitoring .............................................................................34

11.1 Performance Measurement .......................................................................................34

11.2 Improvement Plan ......................................................................................................34

11.3 Monitoring and Review Procedures ...........................................................................36

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Executive Summary

Shoalhaven Water provides treated water to National Health and Medical Research Council(NHMRC) Guidelines (2004) to most towns and villages throughout the City of Shoalhaven. Councilseeks to manage the assets associated with the provision of water supply in a manner that meetsthe required level of service in the most cost effective manner for present and future consumers.

This Asset Management Plan (AMP) has been developed to continue the ongoing process to providea sustainable approach to the management of water supply assets (and the services provided fromthose assets) for the Shoalhaven LGA. This AMP is prepared under the umbrella of CouncilsCommunity Strategic Plan and its vision, mission, objectives and strategies. This Plan is a supportdocument to Councils Delivery Program and Operations Plan and complements the overallShoalhaven Water Strategic Business Plan to ensure that the facilities are provided within economic,environmental and social sustainable criteria.

The asset replacement value for all water supply assets is now almost $500M. Although thecondition of the various water supply asset groups are measured in different ways, the water supplyasset base is generally in good condition, and there does not exist a major backlog or renewal gap.The amount of renewal capital works has been relatively minor for a number of years, primarily dueto the relatively new age and quality of the existing water supply assets.

The current 20 year financial plan allows for a renewals program of approximately $41M in watersupply assets, which would be in excess of the total figure indicated by the asset age for this 20 yearperiod (which is $9M), and compares to the $46M replacement cost for a 30 year horizon. . The

current program therefore allows for a smoothing of the replacement peaks, without going into abacklog situation.

Current water supply maintenance expenditure is considered to be sufficient to meet current servicelevels, however it has been noted that further work is required to develop more robust projectionsof future best practice maintenance scheduling, particularly in the mechanical and electrical areas.

As the integration of Councils various information technology systems becomes more mature, thisasset management plan will be improved through access to more data. A series of actions toimprove this asset management plan and to take it to an advanced approach have been developedand are included.

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1. Introduction

1.1 BackgroundShoalhaven City Council has responsibility for the provision of water supply services for theShoalhaven Local Government area. Council exercises its water supply functions under Division 2Part 3 Chapter 6 Local Government Act 1993. Council meets these responsibilities and deliverswater and sewerage services through Shoalhaven Water, a defined Business Group of Council.

Shoalhaven Water has developed an Asset Management Manual that sets out the approach to assetmanagement and general policies applicable to the management of water, wastewater and REMSassets . That Manual provides considerable detail on the processes required for development andimplementation of the Shoalhaven Water asset register , condition monitoring, valuation andfinancial accounting for assets. This Asset Management Plan (AMP) complements that manual tosummarise the current position of water supply asset management and to continue the ongoingprocess to provide a sustainable approach to the management of water supply assets (and theservices provided from those assets) for the Shoalhaven LGA. This Plan complements the overallShoalhaven Water Strategic Business Plan to ensure that the facilities are provided within economic,environmental and social sustainable criteria.

This AMP covers the following assets:

Asset category Number Replacement Value ($M)

Water Storage Dams 5 70.3

Water Treatment Plants 4 57.5

Service Reservoirs 47 42.3

Pump Stations 26 8.7

Water mains 1,597.2 km 237.8

Water meters 46,955 3.2

It should be noted that some of the above assets are historical assets and do not form part of thecurrent water supply delivery system, but are still required to be maintained and managed.

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1.2 Goals and Objectives of Asset Management Effective asset management includes the planning, creation, operation, maintenance and review of assets over their whole life cycle to achieve the required Levels of Service at an affordable cost whilesatisfying corporate goals and statutory/regulatory requirements. Council acquires assets viapurchase by contract, construction by Council staff and by handover of assets by developers.

Council seeks to manage these infrastructure assets in a manner that meets the required level of service in the most cost effective manner for present and future consumers. This AMP is preparedunder the umbrella of Councils Community Strategic Plan and its vision, mission, objectives andstrategies.

Councils vision is

We will work together in the Shoalhaven to foster a safe and attractive community for people tolive, work, stay and play; where sustainable growth, development and environmental protection aremanaged to provide a unique and relaxed lifestyle

In delivering Councils vision through a 20 year planning horizon for the provision of water supplyservices, the following primary objective has been identified:

Sustainable water supply and sewerage services providing responsible community returns

To achieve this objective, two strategies provide overarching direction to Shoalhaven Water:

1. Review and implement the Shoalhaven Water Strategic Business Plan in accordance withthe Best Practice Management of Water Supply and Sewerage Guidelines.

2. Deliver to Council an appropriate annual community dividend from the Shoalhaven Wateroperations.

1.3 Core and Advanced Asset Management This asset management plan is prepared as a core asset management plan in accordance with theInternational Infrastructure Management Manual 1( IPWEA, 2006). It is prepared to meet minimumlegislative and organisational requirements for financial planning and reporting and sustainableservice delivery . This core approach is top down with decisions made at the system or networklevel.

Future revisions of this asset management plan will be driven towards a more advanced approachwhich will use a bottom up approach with analysis applied to individual asset information toenhance system knowledge.

1

IPWEA, 2006, International Infrastructure Management Manual, Institute of Public WorksEngineering Australia, Sydney, www.ipwea.org.au6


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2. Asset Description

2.1 Overall SystemShoalhaven Water provides treated water to National Health and Medical Research Council(NHMRC) Guidelines (2004) to most towns and villages throughout the City of Shoalhaven.Unserviced towns are located south of Lake Tabourie.

There are also a small number of consumers connected to a raw water supply. These are ruralproperties between Burrier Pump Station and Bamarang WTP, a small isolated system at StrongsRoad serviced from a local pipe head weir (not for domestic purposes), and a single service betweenPorters Creek Dam and Milton WTP. Raw water is supplied to Australian Paper Mill and ShoalhavenStarches at Bomaderry by gravity pipeline from Bamarang Dam.

About 90% of the systems raw water is pumped from the Shoalhaven River at Burrier approximately47 km upstream of the ocean estuary outlet. The water is pumped from Burrier to a 3,800 megalitre

off river storage dam at Bamarang near Nowra West. The water is then pumped from the dam toWater Treatment Plants at Bamarang and Flatrock. The treated water is then transferredthroughout the City.

The southern Shoalhaven is partly served by the Porters Creek Dam west of Milton and supplies theMilton Water Treatment Plant. The plant treats water for the towns/villages of Milton, Ulladulla,Narrawallee, Mollymook, Kings Point, Burrill Lake and Lake Tabourie. Bendalong, Manyana, Conjola& Fishermans Paradise are supplied from the Northern System, which also supplements the areaserved by the Milton Water Treatment Plant over peak demand holiday periods.

A fourth treatment plant is located in Kangaroo Valley at Bendeela Pondage and supplies water tothe Kangaroo Valley township. This plant is a microfiltration plant and operates using a membranesystem for removing colour, sediment and algae.

A 7,600 megalitre storage dam at Danjera acts as an emergency backup supply feed for theShoalhaven River in times of drought. The combination of Danjeras 7,600 megalitres and the off river Bamarang 3,800 megalitres storage acts to limit the effect of low flows in the Shoalhaven Riverto provide drought security for the Shoalhaven City water supply system. The average daily waterdemand for the 2009 calendar year was 40.1 ML/day, with a peak day of 79.8ML/day. The systemhas the capacity to treat 114 megalitres per day.

The flow in the lower Shoalhaven River is controlled from Tallowa Dam, owned and operated bySydney Catchment Authority. Release of water from Tallowa Dam for Shoalhaven use is controlledthrough a series of agreed protocols between SCA and SCC.

Schematic representations of the various water supply systems are given in the following diagrams.

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8

Northern Shoalhaven Water Supply System


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9

Southern Shoalhaven Water supply System

Kangaroo Valley Water Supply System


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2.2 DamsShoalhaven Water has asset management responsibility for the following dams:

NameCapacity

(Megalitres)Year of

ConstructionComments

Bamarang 3,800 1982 Main Northernstorage

Danjera 7,660 1968 Emergency Storage

Porters Creek 1,900 1968Main Southernstorage

Flatrock 570 1933 Disused

Cambewarra 501910

Raised 1927Disused

2.3 Water treatment plantsWater is treated to the relevant potable standards for the Shoalhaven communities through 4 watertreatment plants. Details of these plants are given in the table below.

WTP CAPACITY (ML/d) Processes Year of ConstructionBamarang 75 Alum flocculation/clarification

sand filtrationlime/CO 2 pHcorrection/stabilisationchlorine disinfectionfluoridation

1982

Flatrock 28 alum flocculation/clarificationsand filtrationlime/CO 2 pHcorrection/stabilisationchlorinationfluoridation

1934

Milton 10.5 flocculation (rapid)sand filtrationchlorinationlime/CO 2 pHcorrection/stabilisationfluoridation

1998

Kangaroo Valley 0.84 activated carbonmicrofiltrationchlorinationfluoridation

1993

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11A Group of Shoalhaven City Council

2.4 ReservoirsThe table below provides details of all existing (including disused) reservoirs.

Reservoir

Identification

Capacity

(ML)

Construction

Material

Year of

Construction

InServiceYes/No

Location

R40 20 Concrete 2005 Yes Kells Rd, TomerongR39 10 Steel 2000 Yes BTU Rd, Nowra Hill

R33A 0.6 Concrete 2000 Yes Corks Lane, MiltonR51 0.4 Concrete 1999 Yes Porters Creek Rd, Pointer Mountain

R16B 1.4 Steel 1996 Yes Kangaroo Valley Rd, BundewallahR42 8.1 Steel 1996 Yes Filter Rd, West NowraR48 0.1 Concrete 1995 Yes Roxbrough Rd, Far MeadowR49 0.1 Concrete 1995 Yes Northview Cl, CoolangattaR17 2 Steel 1993 Yes Marshall St, Kangaroo Valley

R18 0.1 Concrete 1991 Yes Jacks Corner Rd, Kangaroo ValleyR24A 0.1 Concrete 1990 Yes McArthur Dr, Falls CreekR24B 0.1 Concrete 1990 Yes McArthur Dr, Falls CreekR32 4 Steel 1988 Yes Cornfield Rd, Fishermans ParadiseR34 10 Steel 1987 Yes Princes Hwy, MiltonR15 0.02 Concrete 1987 Yes Strongs Rd, Jasper BrushR25 3 Steel 1986 Yes Crookhaven Pde, CurrarongR30 8 Steel 1986 Yes Cunjurong Point Rd, Cunjurong PointR36 10 Steel 1986 Yes White Gum Rd, West UlladullaR29 13 Steel 1986 Yes Pacificana Dr, Sussex InletR21 13 Steel 1985 Yes Coonemia Rd, CallalaR3 16 Concrete 1985 Yes Yalwal Rd, Bamarang

R1.1 0.1 Concrete 1983 Yes Grassy Gully Rd, BurrierR27 13 Concrete 1982 Yes Lively St, VincentiaR5 20 Concrete 1982 Yes Pitt St, North Nowra

R50 0.02 Concrete 1982 Yes Strongs Rd, Jasper BrushR2 5 Concrete 1982 Yes Yalwal Rd, Bamarang

R37 5 Concrete 1981 Yes White Gum Rd, West UlladullaR11 0.05 Concrete 1981 Yes Croziers Rd, Jasper BrushR9 2.3 Concrete 1980 Yes Reservoir Lane, Cambewarra

R20 2.3 Concrete 1976 Yes Edward Wollstonecraft Lane,

R4B 4.5 Earth 1976 Yes Filter Rd, West NowraR33 4.54 Concrete 1975 Yes Corks Lane, MiltonR35 2.27 Concrete 1975 Yes Pengana Cres, Mollymook

R16A 1.4 Concrete 1974 Yes Kangaroo Valley Rd, BundewallahR7 2.3 Concrete 1973 Yes BTU Rd, Nowra Hill

R38 1.36 Concrete 1973 Yes Canberra Cres, Burrill LakeR28 1.4 Concrete 1972 Yes Lively St, VincentiaR22 2.3 Concrete 1970 Yes Coonemia Rd, Callala


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R31 0.68 Concrete 1968 Yes Lake Conjola Entrance Rd, Conjola ParkR1 9.1 Concrete 1962 Yes Burrier Rd, Burrier

R12 0.23 Concrete 1960 Yes West St, NowraR6 0.5 Concrete 1960 Yes Pitt St, North Nowra

R13 0.23 Concrete 1960 No Hale Ave, NowraR14 0.23 Concrete 1960 No Princes Hwy, NowraR23 0.23 Concrete 1952 No Church St, Greenwell PointR10 1.9 Concrete 1948 No Coolangatta Rd, BerryR4A 2.3 Concrete 1934 Yes Filter Rd, West Nowra

2.5 Pump StationsThe table below provides details of Shoalhaven Water Pump Stations

CapacityPump StationIdentification kW L/s

DetailsYear

ConstructedIn Service

Yes/NoLocation

WPS 31 3.3 160 Grundfos 2005 Yes Park Row, Orient Point? Unknown 1999 Yes Yalwal Rd, Bamarang

PS13 37 45 KSB Ajax (Omega Make) 1997 Yes George St, BerryPS29 2 1.6 2 x Grundfos CR8-60 1995 Yes

Roxbrough Rd, FarMeadow

PS30 2 5.7 2 x Grundfos CR16-40 1995 Yes Bolong Rd, Coolangatta

PS20 3 28 Flight CP3102-180MT 1991 YesJacks Corner Rd,Kangaroo Valley

PS19 50 10 Ajax 1990 YesJervis Bay Rd, FallsCreek

PS21 150 75 2 x Weir 1987 YesLake Conjola EntranceRd, Lake Conjola

PS12 4534.

1Thompson/Byron/Jackson 1986 Yes

Fletchers Lane, Meroo

MeadowPS6 55 44 Thompson/Byron/Jackson 1986 Yes

Currarong Rd,Kinghorne

PS7A 55 77 Thompson/Byron/Jackson 1986 Yes Bolong Rd, BolongPS5 95 92 2 x Worthington 1984 Yes Lakeland Ave, Berrara

PS4 400 350 Worthington 1984 YesSpringbank Rd (Priv),Worrigee

PS1 1950 925 Thompson/Byron/Jackson 1983 Yes Grassy Gully Rd, BurrierPS2 250 770 Thompson/Byron/Jackson 1982 Yes Yalwal Rd, Bamarang

? Thompson/Kelly/Lewis 1982 Yes Yalwal Rd, Bamarang

PS14 2.2 4.1 Grundfos CP3 100A 1981 YesMullers Lane, JaspersBrush

PS22 32.64

Multi Stage Onga 1980 Yes Corks Lane, Milton

PS24 5.5 1.7 Grundfos CR8-100 1980 Yes Croobyar Rd, Croobyar

PS23 1.5 1.7 Grundfos CP3-80R ? 1980 YesWoodstock Rd,Woodstock

PS10 40 125 Unknown 1980 Yes Illaroo Rd, North NowraPS3 900 325 Kelly & Lewis 1980 Yes Springbank Rd (Priv),


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Worrigee

PS11 37 29 2 x Kelly & Lewis 1973 YesPrinces Hwy, MerooMeadow

? Disused 1987 1967 No Illaroo Rd, North NowraPS32 2.6 Unknown 1964 Yes Pointer Rd, Yatte YattahPS9 60 42 3 x Grundfos CR60-80 1961 Yes Illaroo Rd, North Nowra

2.6 Water mainsThe table below provides a summary of Councils water main assets

Years to ReplacementDiameter (mm) Total Length (m) Asset Value ($)

Min Max Ave20 877 $38,973.46 28 70 4625 4,100 $204,387.62 20 77 4930 1,119 $59,237.59 38 58 5432 2,809 $126,378.52 13 78 45

40 2,909 $143,781.52 24 77 5250 53,662 $2,772,394.13 21 79 5255 4,069 $230,010.92 23 42 3063 4,279 $101,869.11 31 79 6965 34 $3,149.50 51 62 5875 1,014 $70,261.19 43 46 4380 9,233 $804,266.95 -17 78 46

100 765,647 $64,727,126.76 -17 79 49110 174 $17,115.46 72 72 72125 2,775 $134,572.91 61 79 73150 223,589 $26,997,361.71 -17 78 44155 208 $27,462.83 46 46 46180 481 $67,314.80 76 78 77195 24,186 $3,213,879.42 -17 71 51200 85,579 $11,106,705.33 -17 78 49225 21,112 $2,987,748.79 30 57 52250 52,584 $8,642,803.11 20 78 47300 119,718 $22,721,842.26 18 77 47375 33,650 $9,636,423.98 30 76 53450 77,886 $28,487,864.85 30 69 50500 12,337 $4,930,255.75 48 53 50

525 5,248 $2,482,544.48 30 53 49600 57,484 $27,957,043.66 47 74 57675 4,704 $2,949,738.62 48 52 49750 25,008 $15,765,413.45 30 53 38900 303 $9,368.86 50 53 53

1200 448 $360,936.58 50 50 50Total 1,597,226 $237,778,234.13


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Pipe materials include ductile iron, asbestos cement, upvc and polyethylene. Asbestos Cement (AC),UPVC/PVC-m/PVC-O, High Density Polyethylene (HDPE), Cast Iron Concrete Lined (CICL), Cast Iron Unlined,Ductile Iron Concrete Lined (DICL), Mild Steel Concrete Lined (MSCL), Mild Steel Unlined and Galvanised Iron.The graph below provides an age profile of all water mains.

2.7 Water metersThe number of water meters managed by Shoalhaven Water is shown by size in the following table:

Meter Size (mm) Number

20 44406

25 1108

32 283

40 513

50 480

65 81

80 52


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100 28

150 2

200 2

Total 46955


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3. Levels of Service and KPIs

Shoalhaven Water has adopted a number of service levels relating to water supply. These are given in thetable below.

Water Supply Levels of Service

TYPE OF SERVICE LEVEL OF SERVICE

Water Pressure toboundary of property

Provide between 15 metres and 90 metres head of water in the reticulation system to 95% of allresidential connections under normal operatingconditions during summer whilst conveying aminimum of 9 litres per minute

Consumption Restrictions Frequency of Water Restrictions

The water supply system has been designed so thatrestrictions on supply should not be necessarymore than once every 10 years on average andshould not last, in total, for more than 5% of thetime. The system should be able to supply 80% of the unrestricted demand through a repeat of theworst recorded drought starting at the timerestrictions are first applied. (The 5:10:20 rule)

Restrictions are only applied whensevere water shortages are evident. There arefour categories of restrictions, each with anincreasing impact on consumption, inaccordance with the current DroughtManagement Plan

Restrictions will be widelyadvertised to ensure total awareness by allcustomers.

Potable Water Supply Water supplied in the reticulated systemshould meet the Australian Drinking WaterGuidelines, as published by the National Healthand Medical Research Council.

Exceptions The Strongs Road, Burrier and Porters Creek


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TYPE OF SERVICE LEVEL OF SERVICE

untreated systems

Interruptions to Supply a) Planned

Individual domestic and commercial customers willreceive 24 hours notice and industrial customers, 7

days or by agreement.

For large areas, radio and newspaper notice will begiven.

If interruption will be less than four hours, noticewill only be given to those customers who are putat extreme inconvenience.

b) Dialysis patients

All patients reliant on a dialysis machine will beadvised of planned or unplanned interruptions tosupply.

Water for fire-fighting Water will be available from reticulated hydrants inurban areas for fire-fighting.

Service Levels - Responses

TYPE OF RESPONSE CURRENT LEVELS OFSERVICE TARGET

RESPONSE TIMES TO SYSTEM FAILURES

(defined as maximum time to have staff on site to commencerectification after notification.)

Priority 1:

(Major property damage, large volume of water wasted,significant environmental or health impact or significantdepletion of service reservoir.)


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during working hours

after hours

1 Hour

2 Hours

Priority 2 :

(Minor property damage or minor environmental or healthimpact)

during working hours

after hours

2 Hours

3 Hours

Priority 3:

(Interruption to a single customer) 1 Working day

Priority 4

(Minor problem or complaint) 3 Working days

These levels of service are used in the development of the resourcing strategy and for identifyingcapital works requirements. In addition, there are a number of Key Performance Indicators (KPIs)that have been developed through the Community Strategic Plan process and are regularlyreported to Council and the community. The KPIs and related targets that can influence watersupply asset management are as follows:

Indicator Target

Operating Cost Water ($/property) 347

% of population where microbiological compliance was achieved 100

Water main breaks (number per 100km of water main) 15

Other KPIs are reported through the state and national performance reporting frameworks. These KPIs assistin the development of asset replacement or enhancement programs.


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4. Asset Condition

4.1 Regulatory Reporting of Asset ConditionCouncil is required to include the condition of its water assets as part of Special Schedule 7 in its annual

financial statements. The asset condition for each asset category (water supply is one asset category) isdefined using a key as per the NSW Local Government Asset Accounting Manual. This key is as follows:

1 Near Perfect Ranges from New or Good

2 Superficial Deterioration Ranges from Generally Good to Fair

3 Deterioration Evident Ranges from Fair to Marginal

4 Requires Major Reconstruction Ranges from Poor to Critical

5 Asset Unserviceable, Critical Beyond Repair

The water supply information in the 2009/10 Special Schedule 7 is as follows:

Asset Condition Estimated cost tobring up to asatisfactorycondition standard

Required AnnualMaintenance($000s)

Current annualmaintenance($000s)

1 - 3,050 2,942

This information only provides an overall snapshot of the water supply asset condition.

4.2 Asset Condition MethodologyThe condition of the various water supply asset groups are measured in different ways. The methodologyand methods of ranking for the condition of individual assets is contained in the Shoalhaven Water AssetManagement Manual.

The following table summarises the current methodology for each of the water supply asset groups:

Asset Group Methodology ResourcesRequired

InformationStorage

Comments

Dams Dam SurveillanceReports

External specialistconsultants andtrained in- house

ReportsIndividualTRIM files


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staff

Treatment Plants Operations Manuals,Mechanical andelectricalmaintenance proactive and

reactive

Internal staff,mechanical andelectrical businessunits, externalcontractors

Variousdatabases

Reservoirs Internal Inspections External Specialists ASAMREALTIMEdatabaseReportsIndividualTRIM files

Condition dataheld in externaldatabase inputby inspectioncontractors.

Pump Stations Mechanicalmaintenance -reactive

Mechanical servicesbusiness unit

Hard copies inmechanicalservices area

Water mains Age of pipes,capacity, pipematerial and numberof breaks

In-house staff andsystems

ConquestMerit

Water Meters Age, throughputvolume, field testing

In-house staff andsystems

Fujistu 4 yearreplacementprogramcommenced 2011

Each of the asset groups are considered in more detail in the following sections.

4.2.1 Dams

Name TypeANCOLD Hazard

Rating

Bamarang Earth Fill Significant Prescribed

DanjeraConcrete diamond head buttress mainwallEarth embankment right side wall

Low Prescribed

Porters Creek Post tensioned concrete gravitysection & earth-fill embankment

Significant Prescribed

Flatrock Concrete Arch Low Not Prescribed

CambewarraConcrete GravityEarth fill embankment

HighConsequence

Not Prescribed


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Under the Dams Safety Act, the NSW Dam Safety Committee(DSC) requires the owner of any prescribeddams to inspect and monitor such dams . The DSC prescribes all dams that meet certain criteria related toheight, storage size and the consequences of failure. The DSC requires owners of prescribed dams to submitSurveillance Reports on those dams at five yearly intervals .

4.2.2 ReservoirsCouncil uses external diving contractors to carry out inspections for some of the in-service reservoirs. These

inspections are done at the same time as cleaning of the reservoirs. The data from these inspections is heldin an external database with access capabilities from Shoalhaven Water staff. Reservoirs are inspected on a 4

yearly cycle.

4.2.3 Pump StationsCritical water supply pump station data includes mechanical and electrical capacity and maintenance

records. It has been recognized that a central database is required to allow Shoalhaven Water staff as well as

mechanical and electrical staff to coordinated and access this data. Options are currently being considered as

to the development of an asset maintenance system for these types of assets that have significant

mechanical and electrical components.

4.2.4 WatermainsIn terms of replacement values, the watermain assets represent over 56% of the total water system asset

value. The primary asset watermain data is held in Conquest. The data in this system includes the physical

data and age of the pipes. The graph below shows the replacement cost per year based purely on the life of

the pipe.


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The graph indicates major replacement liabilities from 2040 and 2060. This is a reflection of the relativelyyoung age of the pipe system, and the assumed life of the pipe types within Conquest.


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The graph below shows the replacement lengths and costs for each of the main pipe types. The dominanceof AC and UPVC pipes will have a significant impact on the forward renewal program. As further operationaldata is obtained, the assumed asset lives will be able to be further refined.

Operational data relating to performance (eg number of leaks and breaks) is held in a separate system(MERIT) and cannot be automatically linked to individual assets identified in Conquest at the current time.

The graph below provides an example of the information from the Merit system on watermain bursts. Thisinformation can be drilled down to suburb or street level only.


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Such condition data is used to support or confirm submissions from field staff for various renewal orreplacements of assets in the short/immediate term. Other data for input into the longer termrenewal/replacement program is based on the age and type of the pipes.

4.2.5 Water MetersThe performance of the water meter fleet is an integral component of Shoalhaven Waters revenue streamand level of customer service. The replacement of water meters from an industry perspective is largely

driven by the timescale/volume of water passing through the meter and water usage pricing. As watermeters age the unit invariably under-records the actual water volume passing through the meter.

The National Measurement Institute, National Framework for Urban Water Metering that was released inMay 2010 now provides Water Utilities with more detailed information concerning the performancetolerances of water meters and places greater demand on the industry to ensure that meter accuracy ismaintained through strategies such as meter replacement programs.

The last large scale replacement of water meters in Shoalhaven occurred in 2003 when 15,000 meters werereplaced. Testing was carried out on a cross section of these removed meters by Brisbane City CouncilsNATA Accredited Laboratory to gauge the reading accuracy of the meters based on age and volume. Based

on an analysis of these results against the entire fleet, a water meter replacement and management programhas been developed to target;

aged meters (+ 10 years),high consuming 20mm meters (+ 8,000 kl), andin-situ testing of large meters and meters recording 3,500 kl per year prior to replacement

The meter replacement program commenced in 2010 with 955 meters replaced. The intention for 2011 to2014 is to replace over 25,000 meters. This replacement strategy takes cognizance of the NationalFramework for Urban Water Metering and is targeting as a priority those older meters, some of which havebeen installed for over 20 years.


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5. Future Demands and Enhancement Needs

A number of factors affect the demand for water supply and water supply services including developmentgrowth rates, changes in demographics, environmental factors, agricultural practices, technological changes,pricing and consumer practices. A Demand Management Plan developed in conjunction with extensiveconsultation has driven down water supply demand over the last decade. The following graph shows theannual treated water production versus the number of assessments and highlights this trend.

The effect of this reduced demand is that capital works for increased growth have been able to be deferred,and the capacity of some individual assets may have a longer life cycle than originally estimated. This maydrive a greater focus on asset life from a quality (rather than capacity) perspective.

The water and sewer funds provide for capital programs each year for renewal/replacement works, newworks for growth and new works for asset enhancement (including backlog sewerage works). The buildingblocks or drivers of these programs are given in the diagram below.


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Capital Works - Water and Sewer

Renewal /Replacement

AssetManagement

Plans

New Works (Growth)

DeveloperServicingPlans

(Section 64)

Water SupplyHeadworks

Strategy

New Works (Asset Enhancement)

PollutionReductionPrograms

Changes inregulatoryand operating

standards

BacklogSewerageProgram

Over the last 7 years the amount of renewal capital works has been relatively minor, primarily due to therelatively new age and quality of the existing water supply assets. This is shown in the graph below.

These figures provide a broad based categorization of the drivers for the capital works program, but somecaution also needs to be applied. Individual projects do not necessarily fall neatly into a growth, renewal

or enhancement category and can be a combination of all three, which would not be reflected in thefinancial information for the project. Based on the current information on assets, a 20 year renewal plan isincluded in the water supply 20 year capital financial plan, as shown in the graph below. Further datainterpretation will be required to refine these estimates.


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6. Operations and Maintenance Plans

Operations and Maintenance Plans aim to ensure that service objectives (i.e. Levels of Service,statutory/regulatory requirements, and obligations, etc) are achieved at the optimum cost and that theimpact of any break-downs or outages is minimised.

The operations of Shoalhaven Water facilities are undertaken in accordance with operational manualsproduced during the commissioning or upgrading. Operations manuals have been prepared for each watertreatment plant. Monthly reports are prepared by each operational area. Water supply historicalmaintenance expenses are shown in the graph below.


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Although current maintenance expenditure are considered to be sufficient to meet current service levels,further work is required to develop more robust projections of future best practice maintenance scheduling,particularly in the mechanical and electrical areas.

7. Disposal Plan

Disposal of an asset includes any activity associated with the disposal of a decommissioned asset includingsale, demolition or relocation. Shoalhaven Water has a number of decommissioned water supply assets thatwill require further examination for future disposal or ongoing maintenance options, including Cambewarra

Dam, Flatrock dam and a number of weirs.

8. Financial Summary

8.1 Asset Valuation and DepreciationThe revaluation of water supply assets in the 2006/07 financial year resulted in a significant increase indepreciation from the 2007/08 financial year, as shown in the graphs below. The asset replacement valuefor water is now almost $500M.


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8.2 Financial Statements and ProjectionsThe following graph provides a snapshot of future water supply replacement requirements, based on designasset life only. The timeline has been grouped into decades for simplicity.

The financial planning period for the capital works program is 20 years, and the 20 year period expandedfrom the above graph is given below.


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The backlog of approximately $2M suggested by the above graph has not been confirmed as required on apractical level. In addition, the integrity of the data in Conquest relating to renewals already carried out hasyet to be checked.

The 20 year financial projections for planned operating expenditure (operations and maintenance), thedifferent categories of capital spending and the depreciation estimates are given in the graph below.

The current 20 year financial plan allows for a renewals program of approximately $41M in water supplyassets, which would be in excess of the total figure indicated by the asset age for this 20 year period (whichis $9M), and compares to the $46M replacement cost for a 30 year horizon. The current program thereforeallows for a smoothing of the replacement peaks, without going into a backlog situation. With no data tovalidate or dispute the assumed asset lives at this stage, the model will be refined through what if

scenarios.


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9. Risk Assessment and Management

Water supply assets have been defined as critical assets within Councils Asset Management Strategy.Critical events relating to water supply assets have been identified as part of a preliminary risk assessmentand the controls and risk treatment are summarised in the table below.

Risk Consequence Controls Preferred Treatment

Water Supply Unforeseen failure of major structures, eg.dams, reservoirs, watertreatment plants, waterpumping stations

Loss of water supply toareas of theShoalhaven

Beyond Councilscontrol

1. Consider alternatesupply

2. Implement waterrestrictions

Water supply

Terrorism, sabotage(fire, explosion,malicious damage, eg.Joyriding heavyearthmovingequipment into watertreatment plants, majorwater pumping stationsetc.)

Loss of water supply to

areas of theShoalhaven

Security measures and

monitoring

1. Consider alternate

supply


Water supply Power

outage (caused bybushfire, windstorm,rainstorm, vandalism)to water treatmentplants, water pumpingstations and othermajor water facilities

Loss of water supply Shoalhaven Water are

part of the CriticalIncident ManagementTeam (CIMT) andmove to the SESCentre in suchsituations

1. Supply of

generator whererequired

2. Considerimplementation of water restrictions

Water supply Majorgas leakage, e.g.chlorine leakage atwater treatment plant,propane leakage atPorters Creek dam

Short-term disruptionto treatment of watersupply

Detection controlsystem is in place andalarm monitoring inplace via telemetry

Activate emergencyresponse plan

Water supply Landslips taking outrising mains, gravitytrunk mains alongcreeks and creek

Loss of water supply toaffected areas


Provide temporarymain around slip site.


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crossings

Water Supply Flooding of Burrierpumping station well,e.g. sump pumps fail,rising main failure

Cessation of ability topump water from theriver


Bamarang Dam willmeet supply needs

Water supply Failure/breakage of major water pipelinesnear homes

Flood damage;possible injury Walking inspections of pipeline and leakmonitoring

1. Isolate main2. Assess alternate

supply

Water supply Failureof submarine pipelines,eg. North Nowra trunkmain crossingShoalhaven River

Loss of water supply toNorth Nowra

Condition monitoringof cathodic protection

1. Diversion of supply

2. Considerimplementation of water restrictions

Water supply Failure(eg bursting) of majorwater pipelines under aroad

Injury to road users;major trafficdisruption

Walking inspections of pipeline and leakmonitoring

May require trafficdiversion

Water supply Earthquakes breakingdams, water treatmentplants, reservoirs,pumping stations,mains etc.

Loss of water supply Beyond Councilscontrol

1. Apply DISPLAN


Water supply Damageto major water facilities(caused by bushfire,windstorm, rainstorm,vandalism)

Loss or reduction of water supply qualityand/or quantity

Shoalhaven Water ispart of the CriticalIncident ManagementTeam (CIMT) andmove to the SESCentre in suchsituations

1. Supply of generators whererequired

2. New constructionsto include alternatepower generationfacility

Water supply Contamination (eg.Chemical, biologicalpoisoning) of watersupply

Loss of water supply Security measures arein place and testing isalso done

1. Activate DISPLANand testing


Water Accidentaldigging up or cuttingundergroundcommunications (eg.Telstra) cable

Significant financialpenalties Telstracharge the full repaircosts

Reasonable. SW do aDial Before Digsearch beforecommencing digging.

Continue existing DialBefore Dig approachand advise utilityprovider to repairservice


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10. Service Delivery Model

The operations and majority of routine maintenance activities for water assets are currently undertaken bycouncil workforce. Some specialized maintenance tasks (eg reservoir cleaning) are carried out by externalcontract as Council does not have the resources and/or equipment to economically undertake the activity.

Mechanical and electrical maintenance is currently carried out through an internal service level agreement(SLA) with 2 other groups of Council Finance and Corporate Services and the Assistant General ManagersGroup. These SLAs are currently under review and additional specialized external resources will be used todevelop independent best practice maintenance scheduling as input into these SLA discussions.

Some minor construction activities are undertaken by Council staff, but the majority of construction projectsare undertaken by contract. This model places more emphasis on internal project management resourcesand further assessment of technical resources will be required to determine future requirements.

11. Plan Improvement and Monitoring

11.1 Performance Measurement The effectiveness of the asset management plan can be measured in the following ways:

The degree to which the required cash flows identified in this asset management plan areincorporated into councils long term financial plan and Strategic Management Plan;

The degree to which 1-5 year detailed works programs, budgets, business plans andorganisational structures take into account the global works program trends provided by theasset management plan;

11.2 Improvement PlanEffective asset management includes the planning, creation, operation, maintenance and review of assetsover their whole life cycle to achieve the required Levels of Service at an affordable cost while satisfyingcorporate goals and statutory/regulatory requirements. As the integration of Councils various informationtechnology systems becomes more mature, this plan will be improved through access to more data.

The actions to improve this asset management plan and to take it to an advanced approach are set out in thetable below.

TaskNo.

Task Responsibility ResourcesRequired

Timeline

1. Review appropriatevaluation, depreciation andeffective life procedures foreach water supply assetcategory

Planning andDevelopmentManager inconjunction withFinance

Internal staff Annually


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2. Quality check of data inConquest for consistencywith GIS

Planning andDevelopmentManager

Internal staff June 2011

3. Refine the procedure forrecording asset acquisition


Internal staff Dec 2011

4. Develop the procedure forrecognition of contributedassets



5. Provide input to Councils ITstrategy to supportintegration of assetmanagement and othersoftware

Planning andDevelopmentManager/DirectorShoalhaven Water

Internal staff Ongoing and asper IT timetable

6. Review resourcerequirements as AM systemfunctionality and maturitychanges.

Planning andDevelopmentManager /DirectorShoalhaven Water


7. Develop best practicemechanical and electricalmaintenance requirementsfor water supply assets

OperationsManager

Internal staff andspecializedexternalresources

June 2012

8. Condition Monitoring Develop formalisedcondition monitoringcriteria and inspectionfrequencies.

OperationsManager

Internal staff andspecializedexternalresources

June 2012

9. Review 20 year capitalworks program

Planning andDevelopment

Manager /DirectorShoalhaven Water

Internal staff Annually

10. Asset ManagementProcesses DocumentMaintenance Processes




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11.3 Monitoring and Review ProceduresThis asset management plan will be reviewed during annual budget preparation and amended to recogniseany changes in service levels and/or resources available to provide those services as a result of the budgetdecision process. The Plan has a life of 4 years and is due for revision and updating within 12 months of eachCouncil election

GUIDE Water Supply Asset Management Plan

Documents

Transcript of GUIDE Water Supply Asset Management Plan